Brazil To Require Betting Winnings in 2026 Income Tax

Brazil.- March 18, 2026 www.zonadeazar.com The Receita Federal do Brasil has announced that taxpayers must declare earnings from sports betting and online platforms in the 2026 Income Tax return, referring to the 2025 fiscal year.

New Requirement for Bettors

The rule applies to individuals who earned more than R$ 28,467.20 from fixed-odds betting during the year, including so-called “bets.” These amounts will be treated as taxable income and must be reported in the annual filing.

Additionally, balances held in betting platform accounts exceeding R$ 5,000 at year-end must also be declared.

How Earnings Must Be Reported

Taxpayers will need to declare betting profits as taxable income, while account balances must be included under assets and rights.

Taxation will be based on net annual profit — the difference between total winnings and amounts wagered — with a 15% rate applied to amounts exceeding the exemption threshold.

Stronger Oversight of the Betting Market

The inclusion of betting earnings in tax declarations signals increased regulatory oversight of Brazil’s rapidly growing iGaming and sports betting market.

The measure is part of broader tax updates for 2026, which also include changes in refunds, digitalization, and improved financial tracking.

Edited by @pererarte   www.zonadeazar.com